This year, with the resumption of growth in the market share of millet millet, the founder, chairman and chief executive officer of the millet company Lei Jun also came out more and more to share the experiences of the past two years. Today, Lei Jun delivered a speech at the annual meeting of millet investment and shared a great deal of experience .
Lei Jun first talked about work attitude.He said when looking at Inamizu's book, see two-thirds of the content is to say three sentences: 1. As much as anyone's efforts; 2. Seriously desperately Work 3. Apart from working hard, there is no clever operating know-how in the world, and he says entrepreneurship is not so good, and on the road to success there is only one secret: work hard and hard.
Speaking about the millet climbed out of the pit in the past two years, Lei Jun said that in the first quarter of this year, the mobile phone market ranked first in Samsung, second in Apple, third in Huawei, fourth in OPPO and fifth in VIVO. I can not find millet, and finally understand that we and all other companies in the world have a common name others Two years ago, I told Liu De (millet co-founder and vice president) to discuss: we renamed the company Well, call others, do not do well in the first place, this bull made a big fat.You look at the other 39.9% of the list, more than double the Samsung, and later do not know really fake, Liu De feedback with me , Trade and Industry Bureau will not register.
The following is an excerpt from Lei Jun speech:
Entrepreneurship is not a recipe for success Only hard work
Today we have 190 companies, all of whom are outstanding leaders in the startup market. Almost every one of them is working to create miracles. Our business is booming. Everyone is also an arrogant man. But as an entrepreneur, I may see Is the other side, and I think it is extremely difficult for everyone to work hard in the market because entrepreneurs are actually not as polished as the public understands.
Maybe a lot of people like the feeling of a successful entrepreneur before starting a business .. What is the success of media propaganda and entrepreneurship? Success of the business is luxury and a famous car. Today, buy a plane to buy a yacht tomorrow and attend all kinds of beautiful Of course, there are many successful entrepreneurs who have had a happy life.According to this label anyway, no doubt, I am a failed entrepreneur, because I am a model worker.
I feel very guilty when I say I am a model worker, I'm sorry, I made a wrong demonstration, but sometimes I think, if you really want to realize the dream of the heart, you are better than others How can you be successful? Most of you here, are you really IQ higher than you? Do you really have special resources? Almost everyone is the first generation of entrepreneurs, facing so intense If we pay no more than others, it is impossible to succeed.
This is where my heart is very contradictory and complicated, and I really do not want to hear everyone praising me as a model worker. When I was busy I was also very guilty and I felt myself unsuccessful. Why can not I, like those successful entrepreneurs, Of course, the company came to a stage, I think the main focus of CEO should be in the strategic decision-making, organizational restructuring , Major cooperation, but that is actually very busy, I have seen many successful entrepreneurs, in fact, they are much more busy than we think.
In September I and Zhang Feng (vice president of supply chain Xiaomi) went to Samsung headquarters in South Korea, had the honor to meet the three vice presidents of Samsung I just casually asked a question, so traffic jam in Seoul, when you go to work in the morning? Three Two of the vice presidents told me that I went to work at 6:30 in the morning and because of out of stock I went to visit the vice president in charge of memory, who was at five in the morning and said that because I had to run in the office for an hour, After six o'clock to the office, I said that when do you get off work? He said six o'clock, but at night there is entertainment, about ten o'clock that evening, really entertainment, is to ask me to drink, over 12 o'clock As I explain this example, everyone understands why Samsung has become one of the most profitable or successful companies in the world, and everyone can pay far more than you think, so I have a little balance.
On this flight, I read a book by Inamori.What is Inamizu Kazuo? From scratch he set up two world top 500 enterprises, Kyocera and KDDI, and was hailed as the god of business by the Japanese. Kyocera came to visit a few years ago and sent me a stack of Inamizu's books. To tell the truth, too busy, never looked, are full of dust.Come to Chengdu meeting, I easily find a book from the table - "Six Enterprising." Two-thirds of the content of this book is about these three words:
Pay as much as anyone's efforts
Work hard and hard
3. There is no clever operating know-how in the world except hard work.
After reading this book, I am very touched.I may inadvertently use the world's clever operating know-how, desperately to work hard. Inamori said a lot of ideas, I read that with millet is amazing Consistent. Millet's values are two words: sincerity and love. They talk about the three words: love, sincerity and harmony. Including transparent management - that is, all the company's operations are transparent - and so on the concept of Millet practice is very consistent here, I do not speak, just to share with you the first point, I think, business is not a simple thing, successful entrepreneurs are not as public understanding, easy to succeed. On the way to success, there is actually only one secret: work hard and hard.
Millet dropped out of the world five years ago wanted to rename the company other
Next to share with you the second point, millet pressure over the past two years.
Millet all the way in the previous four and a half triumph, creating a series of world records, the past two years we are in the mud, all kinds of ravaged, criticized many, many of the manuscript indeed, the mobile phone industry performance once the decline began to enter the death Channel, few companies can reverse the competition more difficult than most industries.You shut your eyes and think about it, what is the industry phone? Absolutely not a dry industry!
Internationally, do you think that Apple is a good hit? Or Samsung is playing? Apple has just exceeded 900 billion US dollars market value, is the planet's highest market value of the company. Everyone always told me that your phone why Apple? I said, If I had done an apple, my company worth a trillion dollars OK? I have never been any occasion, like some entrepreneurs at every turn to discredit the apple.I think even at some point better than the apple, already Is a world-class problem. Samsung is the same, I will not start to say.
Who is the domestic market? Huawei, the world's top 500, 180,000 people huge scale; when we enter the market there are associations, but also the world's top 500, but also tens of thousands of people, this is an extremely fierce market. Today actually want to understand that such a cow these companies, why millet a small company to kill the market, all two years and a half to get on .We take for granted that we should always be the king, we absolutely underestimated the difficulty of the mobile phone industry.
We look at the first quarter of this year, the mobile phone market rankings, the first second-ranked third Apple Samsung Huawei OPPO fifth VIVO. Millet it? I can not find millet, and finally understand that we and all of the world Other companies have a common name others (other). Two years ago, I told Liu De (millet co-founder and vice president) to discuss: we renamed the company, called others, is not good in the first place, which You made a big cow, and you look at the other 39.9% on the list, more than double the Samsung, then do not know really fake, Liu De told me that the Trade and Industry Bureau will not register.
Everyone feels millet not, my heart a little wronged you, this is the global rankings, in fact, we ranked sixth in the world.Media always scolded me, I sometimes a little personality, I said: sixth in the world is shameless In fact, not shameful, but when everyone scolded you, little self-esteem is greatly hurt.Of course, if we die from it, even the opportunity to explain, we can only think of us as loser (loser ).
Since the third quarter two years ago, we are really in great pain, we lost all the way after China's first decline in the second quarter of this year, we returned to the top five, an increase of 58.9%; IDC has just announced the third Quarterly data, we have increased 102.6% compared to the same period of last year. I think we have a great opportunity to climb one more in the fourth quarter to enter the fourth place in the world. Today, the table is put on the table, and my heart is very practical. I know the past is How to lose, but also know how to win back step by step.
After the second quarter earnings came out, I saw a report called 'The Golden Age of Lei Jun' and I only read the title because it does not have to be read at all. I am well aware that today's millet has just begun and there are numerous difficulties and problems It's not a big deal to get this today, because I firmly believe that millet is on a right track, step by step, at least in the next two to three years.
Millet's dreams, values and business models have never waver
I would like to share how millet was done.In addition to hard work, I think the reason for the reversal is essentially the success of Xiaomi's dreams, values and business models. Any question and shake at three o'clock.
Seven years ago, I do not understand that the Chinese manufacturing industry was the best in the world. Why do we, the Chinese, look down on domestic products? Why do so many things in our store can not be sold and bought in the world? I even wonder why China did Of the products in the United States to buy cheaper than China to buy a lot? I have never done any one product, idle boring seven years ago, I said I am willing to crack this problem, I do for everyone to see .Although I do not have anything Understand, but I have a simple and pure heart: I hope everyone can use the high quality products made by the Chinese.I hope not only Chinese, everyone in the world, regardless of country, color, religion, people of all ages, We can all enjoy the fun of technological innovation in China, so seven years ago we had the ambition of having a Globe Company as our ambition, and we are going to lead the full rise of the Chinese manufacturing industry as a whole It was also the biggest impetus we decided to make the ecological chain four years ago.
I think millet, alone can not be a lot of people told me that millet mode is too complicated to copy, Lei Jun you gang amazing .I say not, millet mode is the greatest place is replicable.I am willing to help a We have been directed at this, even if millet closed, we promote the progress of the entire Chinese mobile phone industry, but also the glory of millet.You recall that six years ago China Mobile phone industry is what? Are cottage machine thing, millet is a little better cottage, but today the world all agree with the Chinese mobile phone semi-finals how strong the strength is really earth-shaking changes in the next ten years are China, I hope everyone seize the opportunity to believe the millet mode, I believe millet values.
Of course, the biggest difficulty here is that it is not easy to do it. To say simple, especially simple, complex and complex, such as controlling the gross profit margin, this can make a fortune, let you earn a little less, can each person only Earn a dollar restraint greed, the four words written out easily, so difficult to ascend to heaven .Queen is the essence of restraint? Is the time to put the user first, put the partner in second place, the It is the smartest way in the world to put shareholders in the top position and put yourself in fourth place. It's a stupid way to think about things forever, but as you work hard The success, but also can really affect the entire world.
With such dreams, we started to make mobile phones and began incubating eco-chain businesses and started to preach the entire methodology of Xiaomi. I urge the eco-chain department to become a communicator of Xiaomi values. We demonstrate and promote Xiaomi values so that more Of Chinese enterprises come to the fore, this is what we want to do, then millet values is sincere and love, here is not to talk about.
Our business model is that Zhang Feng told yesterday, I also talked about many times the tip mode. We make money is the user willing to give, not a hiding we use a variety of ways. I do not want to do In the business of losing money, I asked for hardware and new retail sales to be flattened, with profits coming mainly from internet business and internet finance. Users are willing to use our internet service and are willing to pay us our money.
In fact, Costco (good market) has long been such a model, Costco gross margin is very low, business basically flat, the profit comes from membership fees and credit card revenue.When users become Costco fans, Costco said you can use our credit card, Let us make a little money, let our staff happy our shareholders happy, let our company sustainable growth.Costco should be considered a traditional chain stores, Wal-Mart is only 11 times the PE, Costco with Google and Facebook, enjoy the three More than ten times the Internet PE. The logic here is that companies such as this really gain the trust of users before they are followed and fans are there.
Fans of the word has now been abused, but the fans are essentially the people who believe in you. Millet House Why Ping effective? One of our users that I entered the millet house can buy things with eyes closed. Members, ask yourself, Your customers can buy your products with your eyes closed? Xiaomi students here also ask ourselves, today's business can make users buy with their eyes closed? Users to buy things with his eyes means that he must have how much you can trust to do At this point, you can see Millet House has the same basket as the supermarket, many users buy things in a basket, the trust behind this is that millet took more than seven years to build step by step The entire business model, I will not start talking about it.
High-quality first cost-effective second
Speaking here, repeat the millet's most important point of view, first of all, to do high-quality products.
High-quality products, not only the quality, but also in the design and user experience.Why millet-based products will make everyone eyes bright? The core of innovation in the design and user experience. Millet-based startups grow to a certain size , Will encounter bottlenecks, to see if this is a piece of traditional ability can not be filled.If you can not improve, quality control, supply chain capabilities, large-scale organizational capacity, relying on design, experience, one by one scale or there will be growth Pressure, so these three capabilities have to gradually increase.
The first is high quality, the second is the cost-effective. Not long ago, we also argued that the high cost. I said that the office with a pen bad pen, but also cost-effective cottage product performance, as long as more The price of cottage, but also cost-effective.China's manufacturing industry is the cost-effective under the guidance of the success of today's scale.However, seven years ago we faced the problem of quality upgrades and consumer upgrades, millet traditional Chinese enterprises based on the cost-effective , Coupled with high quality.We think, first of all, is the quality, and secondly, the cost-effective.Because China's spending power up, cheaper than who has no sense.
We are absolutely cheap really cheap? We enter the mobile phone market, domestic mobile phone an average of six or seven hundred dollars, we come up is two thousand dollars, many times more expensive.We enter the rice cooker market, rice cooker an average of more than 300 dollars, we have a Nine hundred and ninety-nine. Cheap? Not cheap because of high quality, then honest and honest price.We make the first generation of millet MIX, to promote the application of the entire precision ceramic in the mobile phone.At first mass production, the ceramic The cost is 1400, to discontinue the MIX generation, the border, the back panel plus keys at least one thousand and one hundred. Our MIX 2 Unibody full ceramic, the whole cost far exceeds the just listed iPhone X, take In the same hand as the artwork.
So, everyone is pondering millet mode, the first premise is high quality.Of course, some users may not need such a high quality, the so-called high-quality is defined for the user base.Today, our red rice cell phone, regardless of design, Experience or quality, have come to amazing results, but not too much black technology stack, the 8,000 we can buy.
We have promoted the popularization of the entire smart phone. Today, we are popular in India, popular in Indonesia and popular in Russia. I believe we went to the United States and we are also welcome because it is human nature, and everyone is eager to buy it. Price-friendly products, everyone hopes that businesses like friends treat themselves.We think about it, we went to the mall to buy things how tired, you have to compare repeatedly to go.We can do an honest business , So that consumers do not need to compare? They just trust us on the line.
Millet maintenance millet brand treasure charging rate of 80%
So, the most important thing about millet mode is trust. Here, too, I urge one hundred and ninety companies in Xiaomi family: it is easy to make millet brand and smashing is easy. Any quality accident in this seat will be recorded Millet head, even if it is not with millet brand, even if it is not with rice brand.
We have a lot of companies, website promotional materials read 'millet ecological chain of enterprises', Taobao sales when written 'Millet ecological chain of certain companies to do certain products', all with Xiaomi endorsement. This millet brand The burden is very heavy, because you are a little careless hurt the millet brand.More another point, you create your own brand so many products, so that the rice noodles and consumers are confused: millet business has no boundaries? What a Companies that do both are hard-pressed to do well.
I sincerely urge everybody to help me, and today we encounter the biggest problem is how to maintain the millet brand.It can not carry so much product, it can not unlimited endorsement for all of you.Even not present, with no hair relationship with us Of companies, including those fake endorsement, which is the maximum pressure we carry. Once we think millet quality is poor, to be honest, millet phone in the hottest fake rate of 40% in a few years, Fake rate today are about 80%.
Millet brand has gone through a lot of hardships, step by step until today, until no one to do our fakes, you can stand up again, I think the brand is the lifeline for millet, that is, all users trust us. We can only safeguard the brand together, we can symbiotic win-win .Because I believe millet move faster, millet platform potential power, Millet family, everyone can benefit if any one abuse, It is impossible for us to repair the injuries we have caused, and we should all work together to find a balance between quality control and business expansion. I believe that development and stability are integrated and unified. I will not talk about the details.
Finally, I'd like to thank you all for contributing to Xiaomi's millet business. At the same time, I would like to ask your help, let's work together to make Xiaomi brand, Xiaomi brand and Xiaomi brand products together. Thank you.
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